Hydrocarbon Reserves

According to the Energy Information Administration (EIA), Kenya has no proven hydrocarbon reserves.[3] In 2012, Tullow Oil in a joint venture with Africa Oil made two significant oil discoveries in the Tertiary Rift Basin, the first at Ngamia-1 well in Block 10 BB, and the second at Twiga South-1 well in Block 13T.[4] This was followed by further successes at Etuko-1 well (Block 10BB) in July 2013 and at Ekales-1 well (Block 13T) in September 2013, for which, according to both the companies, flow test will be conducted at the end of the year 2013 in order to determine the production potential of both wells.[5][6] Furthermore, on 22 November 2013 Tullow announced a further find in Block 13T, adding to the string of successful explorations in the Tertiary Rift Basin.[7] The find was at the Agete-1 exploration well where the company says it "discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs",[8]. "Net oil pay" refers here to the depth of the rock formation from which the discovered oil can be extracted.[9] It is thought that Blocks 10BB and 13T contain 280 million barrels (MMbbl) and 87 MMbbl of gross contingent oil resources respectively.[10]

In September 2013 CEO of Africa Oil Keith Hill announced that the find passes the threshold of commercial viability,[11] while Tullow Oil's 2013 half-year report states that the discovery is "a crucial step towards establishing commercial viability".[12]

In September 2013 Africa Oil indicated that the Tertiary Rift Basin may contain a total of 20.1 billion barrels of oil,[13] while according to Bloomberg, Tullow Oil claims that Kenya’s deposits may top 10 billion barrels.[14]

There is speculation that the Anza Basin in Eastern Kenya may contain even more oil than Western Kenya, where Tullow Oil's discoveries have gained global media attention.[15]

Apache discovered natural gas at the offshore Mbawa-1 well in 2012. However, the company has since plugged the well after failing to find commercial quantities of natural gas or crude oil.[16] In October 2013 the company announced that it is giving up its hunt for hydrocarbons in Kenya.[17]

Production

According to Tullow Oil's Chief Operating Officer Paul McDade, the company plans to start pumping oil as early as in 2014. [18]